Correlation Between Visa and Mccoy Global

Can any of the company-specific risk be diversified away by investing in both Visa and Mccoy Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Visa and Mccoy Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Visa Class A and Mccoy Global, you can compare the effects of market volatilities on Visa and Mccoy Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Visa with a short position of Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Mccoy Global.

Diversification Opportunities for Visa and Mccoy Global

-0.03

Correlation Coefficient

Visa  Mccoy Global

Good diversification

The 3 months correlation between Visa and Mccoy is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global and Visa is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Visa Class A are associated (or correlated) with Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of Visa i.e., Visa and Mccoy Global go up and down completely randomly.

Pair Corralation between Visa and Mccoy Global

Taking into account the 90-day investment horizon Visa is expected to generate 4.3 times less return on investment than Mccoy Global. But when comparing it to its historical volatility, Visa Class A is 3.75 times less risky than Mccoy Global. It trades about 0.08 of its potential returns per unit of risk. Mccoy Global is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  276.00  in Mccoy Global on December 24, 2024 and sell it today you would earn a total of  53.00  from holding Mccoy Global or generate 19.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Visa Class A  vs.  Mccoy Global

Visa Class A

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Visa Class A are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Visa is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Mccoy Global

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mccoy Global are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental drivers, Mccoy Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Visa and Mccoy Global

The main advantage of trading using opposite Visa and Mccoy Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Mccoy Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mccoy Global will offset losses from the drop in Mccoy Global's long position.

The idea behind Visa Class A and Mccoy Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..